The viability of fixed index annuities for retirement income has been the subject of intense debate between insurance and securities representatives since the products came to market in 1995. Because of the two major market corrections in the past decade, the evidence clearly supports the insurance industry to date. But, past results are not indicative of future performance. Proper due diligence is as important in this area as anywhere.
Using Fixed Index Annuities For Retirement Income:
Fixed index annuities offer partial participation in the growth of an external market index in exchange for a principal guarantee. Since account values of fixed index annuities only move up or go sideways, consumers escape the volatility that has hammered other investment accounts in the past.
To be fair and honest, fixed index annuities are not as much of an alternative to securities as they are an opportunity for greater growth on safe money assets. For the risk averse, they can be a great way to safely accumulate retirement assets and for others it is a good option for allocation of conservatively placed assets.
In addition, fixed index annuities carry an option for guaranteed lifetime income riders that offer some of the highest levels of future guaranteed income in the annuity market. This will allow consumers to establish a base level of retirement income so volatility in other high risk assets doesn’t have such a negative impact on retirement plans. These types of contracts are typically referred to as ‘hybrid annuities‘
Choosing Fixed Index Annuities For Retirement Income
Annuity Straight Talk offers a lot of free resources- starting with our ‘Annuity Report’ you will get a solid understanding of fixed Index Annuities and an outline of specific features of this product type and the guaranteed income riders that are gaining popularity. Fixed Index Annuities are a great option for retirement income for the right people- find out how to choose the right one for your retirement income needs from Annuity Straight Talk.
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